Crude oil demand for refineries in N-E likely to go up, say experts

The crude oil demand for refineries in the northeast is expected to increase up to 16 million metric tons per annum (MMTPA) by 2023-24 against the present demand of around 7MMTPA, according to energy experts.TNN | February 10, 2016, 08:30 IST

Representative ImageGuwahati | 9 Feb: The crude oil demand for refineries in the northeast is expected to increase up to 16 million metric tons per annum (MMTPA) by 2023-24 against the present demand of around 7MMTPA, according to energy experts.

According to director general of hydrocarbon (DGH)'s Hydrocarbon Vision 2030 for Northeast India report, the rise in demand for crude oil will follow after the expansion of existing Indian Oil Corporation (IOCL)'s Guwahati Refinery, IOCL's Bongaigaon refinery and Numaligarh Refinery Limited.

The current supply of crude oil is 4.54 MMTPA from OIL, ONGC and other fields as in 2014-15. On natural gas, the report said the current supply is around 11.3 Million Metric Standard Cubic Meter Per Day (MMSCMD) as on 2014-15 from the northeast and is expected to increase to 15.3 MMSCMD by 2029-30. It said if 'indicative production' figures are considered, the overall production can increase to 20.6 MMSCMD over the same period.

Similarly, overall production of petroleum, oil and lubricant (POL) products in the northeast is expected to increase to 14.3 MMTPA by 2029-30 after the expansion of NRL and IOCL Guwahati and Bongaigaon refineries and maintain a surplus with the consumption forecast of 7.3 MMTPA, the report said.

At present, the overall production of POL is at surplus as consumption in 2014-15 was around 3.2 MMTPA against the production of 6.5 MMTPA. However, in case of LPG consumption in the region was 402 thousand metric tons per annum (TMTPA) against production of 157 TMT in 2014-15.

The report said the consumption is expected to increase to 957 TMTPA by 2029-30 as LPG penetration rates improved in the region. However, LPG production is expected to be around 806 TMTPA, a shortfall of around 150 TMTPA.The Hydrocarbon Vision 2030 for the region will formally be released by Union petroleum and natural gas minister Dharmendra Pradhan here on Tuesday.

The vision document envisages development of the northeast as a 'dominant hub' in the Indian Energy map by utilizing the region's hydrocarbon potential, increasing oil and gas production two fold with the use of latest technologies and equipment. The report said the upper Assam shelf and Assam-Arakan basin, covering an area of 116,000 sqkm, has an estimated 5,040 MMT hydrocarbon resources, of which 2,224 MMT has been explored so far. It said there is considerable opportunity to develop the remaining part.

The upper Assam shelf has been explored up to 90% and the current production of oil and gas is mainly from this basin. On the other hand, 10% of the Assam-Arakan belt has been explored.